Non-alcoholic beer sales up 18% as moderate drinking trend continues

Beer consumption down slightly last year 'in line with the long-term trend'

At an EU level, 7% of all beer sold is now a non-alcohol alternative.

Sales of non-alcoholic beer grew by 18% during 2023 as the public continues the trend of moderating drinking behaviour, a new report by industry group Drinks Ireland shows.

According to the report, beer remains the most popular alcoholic drink in Ireland holding nearly 43% of the market share. 

Of that market, lager remains the dominant offering with 57.6% market share followed by stout at 35.6%.

Ale accounted for just 4.9%, while non-alcoholic beer now accounts for 2% of the market.

Data from Revenue in 2023 showed that beer sales decreased by 0.5% in 2023 compared to 2022. 

Total beer consumption dropped slightly from 4,071 hectoliter (hl) to 4,051hl year-on-year.

There has been a dip of 11% compared to the 2019 pre-pandemic.

“This is in line with the long-term trend of alcohol consumption decline in Ireland, down by 30% in the past 20 years," the report said.

"Per capita alcohol consumption in Ireland is now less than the United Kingdom and most European countries, including Spain, France, and Germany.

“All signs are that Ireland will develop a significant 0.0% market in the years to come if promotion continues.” 

Data from Revenue in 2023 showed that beer sales decreased by 0.5% in 2023 compared to 2022. File picture

The report said that growth in non-alcoholic products has accelerated “even further over recent months”, through the increased availability of non-alcoholic alternatives in pubs, restaurants, hotels and in the off trade.

“This is on the back of strong consumer driven demand, linked to the ongoing trend of moderation and consumers seeking balance in their drinking,” the report said.

The report notes that at an EU level, 7% of all beer is now a non-alcohol alternative.

However, while consumption of alcoholic beers declined marginally in 2023, sales of non-alcoholic beer increased by 18%. 

The report added that production of non-alcoholic beer grew by 50% in response to growing demand.

Drinks Ireland director Cormac Healy said the growth of non-alcoholic beer Ireland is a result of the industry reacting to consumer demand.

“This growth is driven by increased availability and awareness of non-alcohol beers, as well as consumer demand for moderation and balance.

This continues to be a positive trend within the industry that needs ongoing support to grow,” he said.

Domestic beer production saw a slight increase of 1.6% in 2023 with Irish beer exports growing by 11% to reach €330m.

While the report does contain some positive trends for the industry, it added that the beer market “faces challenges in the wider trading and business environment”.

During 2023, like many other sectors, the beer sector faced an increase in the cost of doing business, challenging economic headwinds in particular inflation as well as more restrained customer spending. 

According to the report, just over 8,200hl — equivalent to 100 litres — of beer were produced in Ireland throughout the course of 2023.

The beer sector is also facing pressure from other alcohol categories. 

Of all alcohol consumption, wine was the only category to see an increase year-on-year. 

Its share increased 5.9% to 28.3% with spirits falling 2.6% to 22.6% and cider falling 6.1% to 6.2%.